Monthly Archives: December 2009

How Much Home Can I Afford?

Many calls come in from first time home buyers not knowing where to start when getting ready to buy a home. Some are not sure how much they can afford or should afford. Here are some helpful tips:

1) One of the first thing to do is to locate an agent that you feel comfortable with and that has your best interests in mind. Interview them if you do not know someone personally, even if you are looking to have representation as a buyer.

2) At the same, time find a loan agent. Check with your agent as he or she may have many contacts from mortgage companies and banks. Quite often I find that Mortgage companies may have better programs and lower rates, although not 100% the case.

3) The next thing is to do a budget after getting pre-approved with your loan agent. Many of my buyers says to me, “I am approved for this amount but I don’t want to go that high”. They would like some breathing room.

Below you will find a link for a home affordability calculator for the NAR (National Association of Realtor’s). If you need assistance, have your loan officer, real estate agent, tax advisor sit down and go over your figures with you. Happy House Hunting. Tax Credit deadline to be under contract is April 30, 2010.

Home Affordability Calculator